Kennedy Wilson JV Pays $90M for Portland-Area Portfolio
Acquisition financing included a $32.7 million Fannie Mae loan.
A partnership between a Kennedy Wilson-managed real estate fund and Haseko Corp. has acquired two communities in Vancouver, Wash., for $90 million. Ginn Group sold the portfolio, comprising the 174-unit Villas at 28th and the 176-unit The Farmstead. JLL Capital Markets brokered the deal and arranged the financing.
The buyer took out a $32.7 million Fannie Mae loan originated by JLL that matures in 2029 and carries a 5.43 percent fixed interest rate, according to Yardi Matrix information. Additionally, the partnership assumed the outstanding balance of two Fannie Mae notes totaling $28.8 million.
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Villas at 28th came online in two phases between 2022 and 2023 and features 27 one- and four-story buildings across almost 9 acres. Units consist of studio, one- and two-bedroom floorplans, varying in size from 577 to 976 square feet.
Common-area amenities include a fitness center, EV charging stations, a green area and dog park, a clubhouse with coffee bar, walking trails, a barbecue and an outdoor seating area. The property is at 12101 NE 28th St.
The Farmstead consists of 10 two- and three-story buildings. The unit mix comprises one-, two- and three-bedroom layouts, ranging between 756 and 1,492 square feet.
Common-area amenities at the 2023-completed property include a fitness center, swimming pool, clubhouse, game room, dog park and barbecue grill area. The community occupies 8 acres at 711 NE 112th Ave.
The two communities are within 2 miles of each other and close to dining and retail options, including the Cascade Park Plaza shopping mall. Downtown Portland, Ore., is some 18 miles away.
JLL Senior Managing Director Ira Virden, Managing Director Carrie Kahn and Director Frank Solorzano with the Investment Sales Advisory team brokered the deal.
The Debt Advisory team arranging the financing included JLL Executive Managing Director Charles Halladay, Managing Directors Brandon Smith, Annie Rice, Mark Wintner, alongside Directors Charlie Watson and Gyasi Edmondson.
Portland’s sales volume grows year-over-year
Metro Portland saw five communities trading year-to-date through March for a combined $181.3 million, according to Yardi Matrix information. This marks a considerable growth when compared to 2023’s same period when three assets changed hands for a total of $87.4 million. The average price-per-unit rose year-over-year from $210,990 to $412,076.
Recent deals in the metro included JLL Income Property Trust’s purchase of Creekview Crossing, a 183-unit community in Sherwood, Ore. Metropolitan Land Group sold the asset for $61 million.
Last month, The CONAM Group acquired Skylar Grand, a 170-unit luxury community in Portland, for $34 million. It was the firm’s first purchase through CONAM Strategic Investments Fund IV LP.
